Dear Rusty: Social Security is confusing in itself and gets even more confusing when you receive multiple answers to the same question from multiple sources. During my research I came across your organization, and I hope you can assist me in making educated choices regarding my Social Security benefits.My husband of 20+ years passed away in 1998 and I have not remarried. I will be turning 65 next month (born in 1957), and my full retirement age is 66 years and 6 months. I work full-time, have not made any specific retirement plans, and my current gross salary is over $60,000. So, my questions are: Can I collect any of my late husband’s social security? If yes, when, and how? Signed: Confused WidowDear Confused Widow: From the facts you provided, you are eligible to collect a survivor benefit from your deceased husband, but because you are working full time earning over $60,000 you will not be able to collect those benefits at this time. Here’s why: Social Security imposes an “earnings test” for anyone who collects benefits before reaching their full retirement age. The penalty for exceeding the earnings limit is $1 for every $2 you are over the limit (which is $19,560 for 2022). With $60,000 in earnings, you would be $40,440 over the limit, for which SS would impose a penalty of $20,220. That essentially means that your survivor benefit would be entirely (or almost entirely) offset by the penalty for exceeding the earnings limit, leaving you unable to collect a survivor benefit at this time. The earnings test is in effect until you reach your full retirement age (FRA), after which your earnings will no longer affect your Social Security benefits.There are also other nuances you should know about. Claiming any SS benefit before reaching your FRA will result in a permanently reduced benefit. If claimed at your FRA, your survivor benefit would be 100% of the amount your husband was receiving (or entitled to) at this death but claimed at age 65 your survivor benefit would be reduced to about 93% of his benefit entitlement. Also, you will be eligible for your full widow’s benefit at 66 years and 2 months of age because – in your specific case - your “widow’s FRA” is less than your normal full retirement age. However, the earnings test previously described is still in effect until you reach your normal ...
